Quasi-Experimental Impact Estimates of Immigrant Labor Supply Shocks: The Role of Treatment and Comparison Group Matching and Relative Skill Composition

Abdurrahman Aydemir and Murat Kırdar

No 1123, RF Berlin - CReAM Discussion Paper Series from Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM)

Abstract: This paper examines the employment effects of an increase in labor supply using the politically-driven exodus of ethnic Turks from Bulgaria into Turkey in 1989. The strong involvement of the Turkish state in the settlement of earlier waves of repatriates provides us a strong source of exogenous variation in the 1989 immigrant shock across locations. Using a potential sample of 613 cities and towns in Turkey with variable treatment intensity - in some locations the change in the labor force is almost 10 percent - this analysis places much attention on constructing a matched sample that is well balanced in terms of covariate distributions of the treatment and comparison groups, including matching based on an estimated propensity score. We find a positive effect of repatriates on the unemployment of non-repatriates. In fact, in certain regions, a 10-percentage-point increase in the share of repatriates in the labor force increases the unemployment rate of natives by 4 percentage points. When the analysis is done according to skill groups, we find that the impact is the strongest on the young and on non-repatriates with similar educational attainment.

Keywords: Labor Force and Employment; Immigrant Workers; Quasi experiments (search for similar items in EconPapers)
JEL-codes: J21 J61 (search for similar items in EconPapers)
Date: 2011-12
New Economics Papers: this item is included in nep-cwa, nep-lab, nep-lma and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Quasi-experimental impact estimates of immigrant labor supply shocks: The role of treatment and comparison group matching and relative skill composition (2017)
Working Paper: Quasi-Experimental Impact Estimates of Immigrant Labor Supply Shocks: The Role of Treatment and Comparison Group Matching and Relative Skill Composition (2013)
Working Paper: Quasi-experimental impact estimates of immigrant labor supply shocks: the role of treatment and comparison group matching and relative skill composition (2011)
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